"Economists say this trade has made Japan a source of low-cost capital for the world, pumping money into everything from Wall Street stocks to real estate in South Korea, India and even Eastern Europe. Economists say the risk is that global markets could suffer steep sell-offs, hurting home buyers in Seoul and Bucharest, as well as 401(k) holders in New York, if the trade suddenly dried up — or worse, if Japanese investors started pulling back their money. This has led some economists to begin calling the carry trade a bubble, funded by cheap Japanese credit, that is just waiting to burst."

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